Supply Chain
Risk Assessment
We monitor our global supply network against global supply events 24/7, review possible supply risk scenarios against unplanned interruptions and work with our supply base to improve and lower their overall risk profiles.
Micron’s supply chain risk and resiliency program has global processes, partners with a best-in-class, third-party risk service provider and has resources in place that are continually maturing and improving to ensure a resilient, compliant and sustainable supply chain. Profiling and managing the relative risks of each of our strategic suppliers allow us to ensure a resilient supply chain able to support continuous production and product delivery to our customers, while upholding industry and Micron standards relating to sustainability. As a check on this process, we maintain a compliance hotline for the reporting of violations in our supply chain. We also offer a training program focused on responsibilities and expectations for our suppliers. More than 1,940 supplier representatives participated in this training in 2019.
Micron performs a supplier risk assessment that aligns with our own Code of Business Conduct and Ethics and the RBA code of conduct. In addition, we expect all suppliers to be able to provide evidence of compliance with the following:
- An annual RBA self-assessment questionnaire (SAQ) for a company’s headquarters and all facilities or Micron’s sourcing compliance assessment (SCA)
- An RBA audit or equivalent for any facility identified as high-risk
- U.S. Foreign Corrupt Practices Act
- U.K. Bribery Act
- California Transparency in Supply Chains Act of 2010
- U.K. Modern Slavery Act of 2015
- An updated conflict minerals reporting template (CMRT) in case of addition of any new smelter or change of status of existing smelters
- Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH), updated and provided every six months or as any product change requires
- Restriction of Hazardous Substances (RoHS), updated and provided every 12 months or as any product change requires
- CDP (formerly the Carbon Disclosure Project)
- A sustainability/corporate social responsibility or equivalent report
Micron requests that suppliers provide transparency through supply visibility mapping and supplier assessments, including the following information:
- Data points such as manufacturing locations, emergency contacts, manufacturing recovery time and locations of critical subtier suppliers
- Business continuity processes and programs at manufacturing locations
- Event impact notification responses associated with Micron’s supply chain
- Programs and policies related to ethics, environment, forced labor and safety
While compliance is an important aspect of a responsible supply chain, Micron is evolving to reach beyond compliance and toward greater engagement with suppliers. We are becoming more proactive with improved supplier training and collaboration on supplier diversity and environmental impact. This approach will allow us to retain more suppliers, creating a competitive advantage for our business, and raise standards across our industry.
Micron Suppliers CY19
5,555Utilized suppliers
6,150Supplier sites
80%Of spend with 125 top suppliers
$17.9BTotal spend supporting manufacturing
Top 10 Supplier Locations (by Micron spend):
Japan, Taiwan, Singapore, United States, Switzerland, China, South Korea, Malaysia, United Kingdom, India
Micron Is Also Part of Many
Other Companies’ Supply Chains
We have deep experience interacting with supply chain partners as both a supplier and a customer, and we are subject to many of the same auditing protocols as our own suppliers. All Micron sites have qualified for RBA platinum recognition, and all sites that have been audited in the past two years have achieved perfect audit scores.
How We Manage Risk in Our Supply Chain
Micron’s sourcing risk and compliance group oversees supply chain risk management, which includes environmental, human rights and geopolitical risks. This team continues to mature its mission of enabling a resilient, compliant and sustainable global supply chain, including new and incumbent supplier screening, assessments, investigations, risk profiling, development and auditing. Each year, members of the sourcing risk and compliance group do the following:
- Screen and assess: We initially assess suppliers using inputs from business continuity processes, geographic location, type of commodity or service, Micron’s history with the supplier and third-party reviews. We conduct additional screening for new suppliers.
- Score: We map suppliers at the manufacturing level, focusing on business continuity planning processes, ethics, location, forced labor, environment and safety. We assign an operational risk score that indicates risk associated with manufacturing or business disruption, as well as a score that indicates risk associated with responsibility and compliance. Each score may be high, medium or low.
- Audit: Suppliers identified as high risk may be audited in person to ensure they comply with our code of conduct.
- Improve and develop: We may develop a mitigation plan and request improvement actions of any suppliers found to be out of compliance or the suppliers may be removed from the supply base. Micron may establish corrective action plans, conduct in-person training or develop scorecard reviews or other plans to improve suppliers’ risk profiles.
